July 21, 2007	Saturday	Rajab 05, 1428

KARACHI, July 20: Trading activity on the cotton market on Friday remained insipid owing to closure of the central Punjab markets for official weekend. But stray lots did change hands in the lower Sindh lint and about 1,000 bales were sold on ready basis to the local spinners around Rs3,000 per maund, floor brokers said.

Punjab ginners have further raised their asking prices and are demanding Rs3,200 per maund for the fine type from Burewala and Pakpattan cotton belt.

But spinners and mills were not inclined to oblige them anticipating fresh fall in the world cotton prices that could make imports competitive in the coming weeks, they said.

The reports of pest attack on the new crop in some areas of the Sindh cotton belt did worry spinners as any damage to the crop could well mean a short crop and higher prices, they added.

“No one could deny the fact that the cotton economy is heading for crisis, which in turn could have negative impact on the country’s total export proceeds,” some analysts fear.

What seems to have further aggravated the supply situation is price flare-up on the world cotton markets, which made imports uncompetitive and contributed to sharp increase in the local rates,” they added.

Meanwhile, reports reaching here indicate that more ginneries have resumed their operations both in lower Sindh and central Punjab cotton belts.

New York cotton futures again came in for active speculative selling and fell by 1.80 and 1.90 cents per lb at 62.65 and 64.49 cents for both the ruling October and the forward December contracts respectively.

But on the other hand local official rates did not show any change and were quoted at Rs2,900 per maund for an average type of lint.